EV Policy Goes Beyond Subsidies, Focuses On Structural Reforms: Govt tells Parliament

New Delhi, Jul 29 (KNN) The government has said that its electric vehicle (EV) policy extends beyond purchase incentives and includes a broader roadmap for structural reforms in the transport sector. 

Minister of State for Heavy Industries Bhupathiraju Srinivasa Varma informed the parliament on Tuesday that the schemes such as FAME India Scheme Phase-II and PM E-DRIVE Scheme address demand-side support by reducing upfront costs.

On the supply side, initiatives such as the Production Linked Incentive (PLI) schemes for auto components and Advanced Chemistry Cell (ACC) battery storage aim to boost domestic manufacturing. The Phased Manufacturing Programme (PMP) complements this by promoting localisation of key EV components, Varma noted.

Budgetary Support

The minister said the transition to electric mobility is backed by substantial funding, including Rs 11,500 crore under FAME-II, Rs 10,900 crore for PM E-DRIVE, Rs 25,938 crore under the PLI Auto scheme, and Rs 18,100 crore for the PLI ACC scheme. The investments are aimed at boosting market development and expanding infrastructure to accelerate EV adoption. 

No Fixed 2047 Target, State Role Key

Varma  highlighted that while the government has not set a specific target for the number of EVs by 2047, it is promoting adoption through multiple schemes, including PM e-Bus Sewa Payment Security Mechanism (PSM) Scheme and the Scheme for Promotion of Manufacturing of Electric Passenger Cars in India.

The schemes are demand-driven, and no state-wise allocation of funds has been specified. However, several states, including Telangana, have introduced their own EV policies to complement central initiatives, he added.

(KNN Bureau)